Question: 20. TSG Inc. which is a medium sized organisation that produces multiple products, uses Normal Costing. It accumulates all its indirect costs in a single

20. TSG Inc. which is a medium sized organisation that produces multiple products, uses Normal Costing. It accumulates all its indirect costs in a single pool and then allocates them to each unit of output produced using direct labour hours.

The information provided below relates to the period 1 Jan 2021 to 31 December 2021

Budgeted total indirect cost $200,000

Actual total indirect cost $120,000

Budgeted total quantity of direct labour hours 10,000

Actual total quantity of direct labour hours 14,000

Based on the information above, what is the total amount of indirect cost that would be allocated to all the units of output produced by TSG Inc in 2021, before any end-of-period adjustments are made?

Group of answer choices

$200,000

$144,000

$280,000

$120 000

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